Stock Analysis on Net
Stock Analysis on Net

Freeport-McMoRan Inc. (NYSE:FCX)

DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
Quarterly Data

Microsoft Excel

Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.

Two-Component Disaggregation of ROE

Freeport-McMoRan Inc., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = ROA × Financial Leverage
Dec 31, 2023 11.07% = 3.52% × 3.15
Sep 30, 2023 13.11% = 4.18% × 3.14
Jun 30, 2023 13.00% = 4.14% × 3.14
Mar 31, 2023 16.22% = 5.12% × 3.17
Dec 31, 2022 22.30% = 6.79% × 3.28
Sep 30, 2022 25.93% = 7.77% × 3.34
Jun 30, 2022 32.72% = 9.72% × 3.37
Mar 31, 2022 34.41% = 10.47% × 3.28
Dec 31, 2021 30.80% = 8.97% × 3.44
Sep 30, 2021 29.27% = 8.33% × 3.51
Jun 30, 2021 23.63% = 6.25% × 3.78
Mar 31, 2021 16.56% = 4.14% × 4.00
Dec 31, 2020 5.89% = 1.42% × 4.14
Sep 30, 2020 -1.08% = -0.24% × 4.45
Jun 30, 2020 -7.10% = -1.58% × 4.49
Mar 31, 2020 -8.59% = -1.89% × 4.54
Dec 31, 2019 -2.57% = -0.59% × 4.39
Sep 30, 2019 — = — × 4.34
Jun 30, 2019 — = — × 4.23
Mar 31, 2019 — = — × 4.20

Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the decrease in return on equity ratio (ROE) over Q4 2023 is the decrease in profitability measured by return on assets ratio (ROA).

Three-Component Disaggregation of ROE

Freeport-McMoRan Inc., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Dec 31, 2023 11.07% = 8.09% × 0.44 × 3.15
Sep 30, 2023 13.11% = 9.50% × 0.44 × 3.14
Jun 30, 2023 13.00% = 9.63% × 0.43 × 3.14
Mar 31, 2023 16.22% = 12.07% × 0.42 × 3.17
Dec 31, 2022 22.30% = 15.22% × 0.45 × 3.28
Sep 30, 2022 25.93% = 16.72% × 0.46 × 3.34
Jun 30, 2022 32.72% = 20.08% × 0.48 × 3.37
Mar 31, 2022 34.41% = 20.79% × 0.50 × 3.28
Dec 31, 2021 30.80% = 18.85% × 0.48 × 3.44
Sep 30, 2021 29.27% = 18.45% × 0.45 × 3.51
Jun 30, 2021 23.63% = 14.98% × 0.42 × 3.78
Mar 31, 2021 16.56% = 11.13% × 0.37 × 4.00
Dec 31, 2020 5.89% = 4.22% × 0.34 × 4.14
Sep 30, 2020 -1.08% = -0.73% × 0.33 × 4.45
Jun 30, 2020 -7.10% = -4.92% × 0.32 × 4.49
Mar 31, 2020 -8.59% = -5.68% × 0.33 × 4.54
Dec 31, 2019 -2.57% = -1.66% × 0.35 × 4.39
Sep 30, 2019 — = — × — × 4.34
Jun 30, 2019 — = — × — × 4.23
Mar 31, 2019 — = — × — × 4.20

Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the decrease in return on equity ratio (ROE) over Q4 2023 is the decrease in profitability measured by net profit margin ratio.

Five-Component Disaggregation of ROE

Freeport-McMoRan Inc., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover × Financial Leverage
Dec 31, 2023 11.07% = 0.45 × 0.89 × 20.27% × 0.44 × 3.15
Sep 30, 2023 13.11% = 0.51 × 0.88 × 21.20% × 0.44 × 3.14
Jun 30, 2023 13.00% = 0.52 × 0.87 × 21.09% × 0.43 × 3.14
Mar 31, 2023 16.22% = 0.57 × 0.89 × 23.79% × 0.42 × 3.17
Dec 31, 2022 22.30% = 0.60 × 0.91 × 27.63% × 0.45 × 3.28
Sep 30, 2022 25.93% = 0.62 × 0.91 × 29.35% × 0.46 × 3.34
Jun 30, 2022 32.72% = 0.65 × 0.93 × 33.43% × 0.48 × 3.37
Mar 31, 2022 34.41% = 0.66 × 0.93 × 34.06% × 0.50 × 3.28
Dec 31, 2021 30.80% = 0.65 × 0.92 × 31.55% × 0.48 × 3.44
Sep 30, 2021 29.27% = 0.63 × 0.90 × 32.40% × 0.45 × 3.51
Jun 30, 2021 23.63% = 0.59 × 0.88 × 28.72% × 0.42 × 3.78
Mar 31, 2021 16.56% = 0.56 × 0.84 × 23.82% × 0.37 × 4.00
Dec 31, 2020 5.89% = 0.39 × 0.72 × 15.08% × 0.34 × 4.14
Sep 30, 2020 -1.08% = -0.18 × 0.49 × 8.40% × 0.33 × 4.45
Jun 30, 2020 -7.10% = — × -0.45 × 3.13% × 0.32 × 4.49
Mar 31, 2020 -8.59% = — × -2.25 × 1.38% × 0.33 × 4.54
Dec 31, 2019 -2.57% = -0.88 × 0.30 × 6.19% × 0.35 × 4.39
Sep 30, 2019 — = — × — × — × — × 4.34
Jun 30, 2019 — = — × — × — × — × 4.23
Mar 31, 2019 — = — × — × — × — × 4.20

Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the decrease in return on equity ratio (ROE) over Q4 2023 is the decrease in effect of taxes measured by tax burden ratio.

Two-Component Disaggregation of ROA

Freeport-McMoRan Inc., decomposition of ROA (quarterly data)

Microsoft Excel
ROA = Net Profit Margin × Asset Turnover
Dec 31, 2023 3.52% = 8.09% × 0.44
Sep 30, 2023 4.18% = 9.50% × 0.44
Jun 30, 2023 4.14% = 9.63% × 0.43
Mar 31, 2023 5.12% = 12.07% × 0.42
Dec 31, 2022 6.79% = 15.22% × 0.45
Sep 30, 2022 7.77% = 16.72% × 0.46
Jun 30, 2022 9.72% = 20.08% × 0.48
Mar 31, 2022 10.47% = 20.79% × 0.50
Dec 31, 2021 8.97% = 18.85% × 0.48
Sep 30, 2021 8.33% = 18.45% × 0.45
Jun 30, 2021 6.25% = 14.98% × 0.42
Mar 31, 2021 4.14% = 11.13% × 0.37
Dec 31, 2020 1.42% = 4.22% × 0.34
Sep 30, 2020 -0.24% = -0.73% × 0.33
Jun 30, 2020 -1.58% = -4.92% × 0.32
Mar 31, 2020 -1.89% = -5.68% × 0.33
Dec 31, 2019 -0.59% = -1.66% × 0.35
Sep 30, 2019 — = — × —
Jun 30, 2019 — = — × —
Mar 31, 2019 — = — × —

Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the decrease in return on assets ratio (ROA) over Q4 2023 is the decrease in profitability measured by net profit margin ratio.

Four-Component Disaggregation of ROA

Freeport-McMoRan Inc., decomposition of ROA (quarterly data)

Microsoft Excel
ROA = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover
Dec 31, 2023 3.52% = 0.45 × 0.89 × 20.27% × 0.44
Sep 30, 2023 4.18% = 0.51 × 0.88 × 21.20% × 0.44
Jun 30, 2023 4.14% = 0.52 × 0.87 × 21.09% × 0.43
Mar 31, 2023 5.12% = 0.57 × 0.89 × 23.79% × 0.42
Dec 31, 2022 6.79% = 0.60 × 0.91 × 27.63% × 0.45
Sep 30, 2022 7.77% = 0.62 × 0.91 × 29.35% × 0.46
Jun 30, 2022 9.72% = 0.65 × 0.93 × 33.43% × 0.48
Mar 31, 2022 10.47% = 0.66 × 0.93 × 34.06% × 0.50
Dec 31, 2021 8.97% = 0.65 × 0.92 × 31.55% × 0.48
Sep 30, 2021 8.33% = 0.63 × 0.90 × 32.40% × 0.45
Jun 30, 2021 6.25% = 0.59 × 0.88 × 28.72% × 0.42
Mar 31, 2021 4.14% = 0.56 × 0.84 × 23.82% × 0.37
Dec 31, 2020 1.42% = 0.39 × 0.72 × 15.08% × 0.34
Sep 30, 2020 -0.24% = -0.18 × 0.49 × 8.40% × 0.33
Jun 30, 2020 -1.58% = — × -0.45 × 3.13% × 0.32
Mar 31, 2020 -1.89% = — × -2.25 × 1.38% × 0.33
Dec 31, 2019 -0.59% = -0.88 × 0.30 × 6.19% × 0.35
Sep 30, 2019 — = — × — × — × —
Jun 30, 2019 — = — × — × — × —
Mar 31, 2019 — = — × — × — × —

Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the decrease in return on assets ratio (ROA) over Q4 2023 is the decrease in effect of taxes measured by tax burden ratio.

Disaggregation of Net Profit Margin

Freeport-McMoRan Inc., decomposition of net profit margin ratio (quarterly data)

Microsoft Excel
Net Profit Margin = Tax Burden × Interest Burden × EBIT Margin
Dec 31, 2023 8.09% = 0.45 × 0.89 × 20.27%
Sep 30, 2023 9.50% = 0.51 × 0.88 × 21.20%
Jun 30, 2023 9.63% = 0.52 × 0.87 × 21.09%
Mar 31, 2023 12.07% = 0.57 × 0.89 × 23.79%
Dec 31, 2022 15.22% = 0.60 × 0.91 × 27.63%
Sep 30, 2022 16.72% = 0.62 × 0.91 × 29.35%
Jun 30, 2022 20.08% = 0.65 × 0.93 × 33.43%
Mar 31, 2022 20.79% = 0.66 × 0.93 × 34.06%
Dec 31, 2021 18.85% = 0.65 × 0.92 × 31.55%
Sep 30, 2021 18.45% = 0.63 × 0.90 × 32.40%
Jun 30, 2021 14.98% = 0.59 × 0.88 × 28.72%
Mar 31, 2021 11.13% = 0.56 × 0.84 × 23.82%
Dec 31, 2020 4.22% = 0.39 × 0.72 × 15.08%
Sep 30, 2020 -0.73% = -0.18 × 0.49 × 8.40%
Jun 30, 2020 -4.92% = — × -0.45 × 3.13%
Mar 31, 2020 -5.68% = — × -2.25 × 1.38%
Dec 31, 2019 -1.66% = -0.88 × 0.30 × 6.19%
Sep 30, 2019 — = — × — × —
Jun 30, 2019 — = — × — × —
Mar 31, 2019 — = — × — × —

Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the decrease in net profit margin ratio over Q4 2023 is the decrease in effect of taxes measured by tax burden ratio.